National Republican., 1887-07-09
What the Law Authorizes.

On the first day of this fiscal year there
wGC ii the treasury OF the United States
grand total Of over $572, 100000 in currency,
of which over 1891 100000 was unpledged
for any purpose. 1t is certain that the sum
in the treasury will increase at the rate of
at least slOOOo,0OO per month.
In the meantime, while this plethora ex-
lists In the treasury there Is great scarcity Of
money among the people, and the amount
they hold is bound to decrease steadily
every month. To-day there is not more than
$40 per capita, and will soon be less than
that Thisis not more than one-third enough
on which to transact the business of the
country.
The Secretary Of the Treasury announced
some time since that he would relieve the
distress, by either anticipating the interest
or purchasing bonds In the open market.
He did relieve pinch among the specula-
tors by dumping 100000 900 six days In ad-
vance Of its being due into Wall street.
This temporarily relieved the gamblers, but
1t did not, ..ner could it, relieve the people.
What is wanted is a system by which the
people can be relieved permanently, not
the gamblers temporarily. The laws as
they exist cause the collection OF more
money than Can be used In the current ex-
penses Of the government. But the laws, IL
properly executed, also provide methods by
which the surplus can be paid out and thus
restored to circulation, without resorting
to the expedient Of purchasing bonds at a
high premium, as proposed by Secretary
Fairchild.
The act Of 1869 "To strengthen the pub
lie credit" does that. AS the NATIONAL
REPUBLICAN stated yesterday, every bond
issued since that date-and there are no
others-reads as II these words were In the
body Of the bond: "Pfovided, That II at any
time United States notes can be converted
into coin at the option Of the holder, and
United States bonds can be sold at par
in coin at lower rate of interest than Is
promised In this bond, then the United
States reserves to Itself the privilege Of re.
deeming this bond"
That authorizes redemption at any time.
The Cincinnati Enquirer says:
Ifthe Secretary of the Treasury will take our
advice he will not attempt to buy undue bonds
at a premium. II is a step further than the
United States treasury has ever gone, and that
step further ought not to be taken under a
Democratic administration.
In the face Of the law no Secretary would
dare to do so, even II in that way he could
relieve the stringency of the money market.
But the law Of 1869 gives more power
than that Of purchasing bonds with the
surplus money In the Treasury. II gices The
IOiUer 10 refund The debt at lOWer rate of
interest. A Republican Secretary, Window,
who did not belong to Wall street, exer-
clsed that power. Mr.. Fairchild does not
have to go back very far to find a prece-
cedent. Let him examine contemporane-
GUS history.
The bonded debt of the United States
consists of only two principal items
1921, ,OO0, 900 OF bonds due In 1907, twenty
years from now, bearing per cent
interest, which is S29,0sO, 900 a year, and
in the twenty years amounts to $751;
GC0,OO0; and $250,0O0,0O0 bonds due In
1891, bearing Al per cent. interest," that l;
$l1,250,000 year, and for the four yeart
these bonds have to run the interest on them
amounts to $40, 100000.
but one more years interest at tnls rate
ought to be paid on these bonds, because
In that time the entire sum can be refunded
in thirty-year bonds bearing only per cent
interest, and by doing away with the regis,
try system these bonds can be made h
pass as currency, adding that much to the
actual circulating medium Of the country.
The entire interest to be paid on tn,
bonds is $626, 100000. Deduct the mex
years. interest from that, $40, 1886, 900 las al
the bonds can be retired In that time), and
the sum remaining TO be paid as Interest
would be $3.50, 600. With the bonds re
funded at 2 per cent. onehalf OF this, 1903,
$4,000, can be savedt 10 The people, The latt
authorizes IL. and Congress, as In the cas-,
of Secretary Window, would approve thu
action.
Wall street stock gamblers do not wan
and would oppose It. Bondholders do no
want and would oppose 1t. But th'
people want 1t and would approve 1t
Which side will get what they want ?
The NATIONAL REPUBLICAN, has sub
mitted these proposltions-frst, that thu
Secretary OF the Treasury shall at once give
notice that he will call $l0,0O0,00O eact
month Of the bondsi second, that he shal
Immediately arrange for the refundIng Of